Jackson-area nonprofits have seen major reductions in key revenue sources: foundation grants, state and federal funds, and, most recently, local block grant funding.

It's left them searching for alternative sources of income, but without much luck.

"In general, the nonprofits are struggling right now," said Dawn Anderson-Meier, executive director of the Nonprofit Network. "Of course, the decrease in funding is happening at the very same time there is an increase in the need of services."

Foundations have been hit hard by the stock market and the recession, and state and local governments have seen reductions in revenue, which has forced them to make tough choices about their remaining resources.

The city of Jackson, for example, recently made a preliminary decision to shift $67,500 of the $210,000 in Community Development Block Grant funds normally set aside for nonprofits to street work. A final vote is set for April 21.With respect to the $142,500 going to nonprofits, officials gave priority to those groups critical to the community's social safety net. Programs that provide health care, heating assistance, foreclosure prevention, food and other basic needs were given preference.

For several programs, being denied CDBG funds was one small piece of an increasingly tough financial picture. One after-school program designed to improve family relationships is likely to end. An arts school that serves low-income families may have to raise slightly rates or cut programs, and a youth-mentoring and service program is looking to God for help.

Here's a look at three area nonprofits struggling with decreased funding:

Families and Schools Together

Also known as FAST, Family and Schools Together has helped hundreds of families since it was launched by Family Service and Children's Aid in 1998. It taps school counselors to work with families on improving relationships, addressing violence or substance-abuse issues and improving quality of life. It employs 13 part-time and two full-time employees.

FAST, like many programs, lost more than one revenue source. The state Office of Drug Control Policy, a program that provided the vast majority of the program's funding, is being eliminated, stopping its revenue stream to programs, like FAST.

FAST also received $2,500 in CDBG funds in 2007 and $10,000 last year, but was cut out this year.

"We think the program is valuable. But in this tight environment, there are just so many needs people have," said Judy Jove, executive director of Family Service & Children's Aid. "I am not sure we will be able to continue the programming past this summer."

Jackson School of the Arts

Located at Art 634 in the heart of Jackson's burgeoning arts community, the Jackson School of Arts provides dance, theater and art classes to families on a sliding-fee scale based on income. It opened in 2001 and employs two full-timers and 16-part-timers, also relying on volunteers.

The school received $1,500 in CDBG funds last year, but nothing this year. The organization's operational budget is about $160,000, said Kim Hastings, executive director of the Jackson School of the Arts.

"We were very disappointed not to get it," Hastings, said. " But I am glad to see some organizations did get funding."

The organization is searching for funding and looking for ways to cut back.

"We are going to do everything we can so that the children can still participate in the arts," Hastings said.

Hastings hopes the school will not have to raise class fees.

"If we do have to do a rate increase, it will be minimal," she said. "If our vision is to provide low-cost art programs with a special focus on low-income families, they can't be the ones to make up the difference for it."

Despite the slack economy, Hastings said there is still a high demand for classes.

"People love our program," she said. "We have had many classes that are full, even thought the economy is not great. Especially at this time, people need something to do to give them hope and enjoyment."

Helping All People Excel

This grassroots program is designed to reach the city's at-risk youths who live in the city's poorer neighborhoods on the south side. Helping All People Excel, or HAPE, opened in 2004 in the Neighborhood Resource Center, 1015 Francis.

The organization provides tutoring to youth in the community and family services. The organization requested $3,845 this year and $56,441 in 2007. According to its CDBG application, HAPE's operational budget is about $25,000 and hopes to help 100 people.

HAPE, has never received funding from the city and this year was no different, said Debra Green, CEO of HAPE. Most of the money has come from the volunteers and donations, while they previously received a grant from the Jackson Community Foundation.

"We are going to keep moving," she said. "We are not going to stop trying to help the community on the south side. I think it is kind of sad they don't want to help the south side."

Councilman Andrew Frounfelker said the organization has not received funding because it provides similar services as many other local organizations that are already well established."Right now it is through God," she said of the organization remaining open. "We invest our own money and time. God right now is the one leading us and keeping us afloat. If it wasn't for him, we wouldn't exist."